ABSTRACT

The puipose of this study was to analyze the Impact of Auditors Report on the Performance of Financial Institutions with special focus on Diamond Bank Pic Umuahia. In pursuant of the above purpose, relevant literatures on the subject was reviewed and information necessary for the completion of the study were obtained from completed and returned questionnaire from the respondents and interview. The total population for the study was 300 while the sample size is 171. The statistical technique used for the analysis of data, & hypothesis testing were simple percentage and chi-square (X2) test respectively. Questionnaire was distributed randomly. Total of 171 questionnaires were distributed. The findings established include; auditors report has an impact on the performance of financial institutions, unqualified auditors opinion has a significant relationship between with the organization, and that there is significant relationship between the auditors report and profitability of the organization. Based on the above findings, recommendations were made in this work which include: financial institutions should maintain an efficient accounting system, management should ensure that proper books of accounts are kept in all divisions/departments of their company, financial institutions should maintain an efficient internal control system, financial institutions should engage the services of auditors (both internal and external) and adequately ensuring that they are periodically consistent in submitting their reports to the company on time, financial institutions are advised to strictly adhere to the recommendations usually contained in the report handed over to them by their auditors, and accounting officers of these institutions should be sponsored to attend seminars and workshops to enable them learn and abreast the modern methods in accounting.